The EURO346 million facility backing the EURO460 million LBO of Fiat’s Teksid aluminium unit by a consortium of private equity houses led by Questor Management has launched to the market, via sole mandated lead arranger and bookrunner JP Morgan.
The facility comprises EURO171 million in senior debt and EURO175 million in subordinated debt. Leverage is said be very low at about 1x. The consortium also comprises JP Morgan Partners, AIG and Private Equity Partners.
The sale of Teksid is part of Fiat’s disposal programme, which is aimed at reducing net debt to EURO3 billion from EURO6 billion, and gross financial debt to EURO23.6 billion by the time it approves its 2002 annual report.
Among the companies that banks would like Fiat to sell are insurer Toro, which is worth around EURO3 billion, aeronautics firm FiatAvio, which has a EURO2 billion price tag, component manufacturer Magnetti Marelli and robotics unit Comau, which are jointly worth a further EURO3 billion.